At age 62, Australians are entering the period where their superannuation shifts from being a retirement savings tool, to a main source of income.
By this age, you've passed the preservation age, which means you can access your superannuation if you've quit working. And you're five years away from receiving the Age Pension (if you're eligible for it).
But do you know if you have enough in your super to retire?
Or how your superannuation balance compares to other Australians the same age as you?
Here's a breakdown of what the average superannuation balance is at age 62 in Australia.
Find out how yours compares.
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What is the average superannuation balance for men aged 62 in Australia?
There aren't exact figures, but brackets determined by the Association of Superannuation Funds of Australia (ASFA) provide a good guide.
The data shows that the average Australian male aged 60-64 has around $395,852 in their superannuation.
Is your superannuation in line with the average Aussie the same age?
What is the average superannuation balance for women the same age?
Women the same age have quite a lot less. The average balance for Australian women aged 60-64 is around $313,360. That's a gap of almost $83,000!
Why?
Women typically take a career break to have children or care for family, and during this time they receive little to no compulsory employer superannuation. Women are also more likely to work part-time and work in lower-paid industries. The missing contributions in their 30s and 40s also mean they lose several years of compounding, which takes a huge toll on their end balance.
How does your super balance compare?
Are these average super balances enough to retire on?
If you're happy to live a basic retirement on a tight budget, possibly. But for a comfortable retirement, no.
In fact, the average Australian is quite far behind.
ASFA estimates that it'll cost single Australians around $55,923 per year to retire. It'll cost couples living together closer to $78,566 per year in total.
These figures also assume you'll start your retirement at age 67. It also assumes that you'll receive a part Age Pension around this time and that you own your home outright.
In order to fund this type of comfortable retirement, ASFA calculates that single Australians will need around $630,000 in their superannuation at age 67. Meanwhile, couples will need around $730,000 combined at the same age.
So, how much should I have in my super by age 62 to retire comfortably?
Using ASFA's Super Balance Detective tool, I've calculated what you'd need at ages 62 to reach that sum in the next five years.
Assuming you're aiming for the $630,000 superannuation balance needed for an individual. At age 62, you should have close to $539,000 to be considered 'on track'.
How does your superannuation balance compare now?
